Feeds

Oh Woe is Siebel

'We did not expect the results to be this low'

  • alert
  • submit to reddit

5 things you didn’t know about cloud backup

Siebel has blamed poor execution and weak demand for its expected first quarter loss, ending a fragile recovery of the firm's finances.

In its preliminary results announcement, the California-based business software firm said it expects revenues of between $297m and $300m for the first quarter. This compares to revenues of $329.3m for the same quarter last year.

Net losses for the quarter are expected to be between $7m and $9m, with losses per share of between $0.01 and $0.02 per share.

"Though our services and maintenance businesses continued solid growth in the first quarter, we are disappointed in our application license revenue," said Michael Lawrie, CEO of Siebel Systems. "Though we predicted some license revenue softness going into the quarter, we did not expect the results to be this low."

He blamed the results on the company's failure to close a number of imminent deals during the quarter and on weak demand throughout the industry. The company is also under pressure from competitors like SAP and Oracle, who are moving into Siebel's CRM niche. It also faces competition from Salesforce.com, which provides CRM software as a rental service, thereby removing the need for capital investment in CRM software.

The company is taking a charge of $11m for the acquisition of edocs. Excluding the charge for edocs the company would have had a net profit of between $2m and $4m, or between $0.00 and $0.01 per share. The acquisition of edocs follows the 2004 acquisition of Irish-based financial software company Eontec, which added bank branch teller and internet banking systems to its CRM portfolio.

The disappointing results will increase the pressure on Lawrie, who faces a rebellion from one important shareholder. Providence Recovery Partners is pressing Siebel to use cash reserves to buy back shares and to improve the company's chances of being acquired. Providence is inviting other major shareholders to discuss the company's financial options.

© ENN

Related stories

Tom Siebel steps down as CEO
Siebel offers up to $150m for Eontec

Boost IT visibility and business value

More from The Register

next story
Munich considers dumping Linux for ... GULP ... Windows!
Give a penguinista a hug, the Outlook's not good for open source's poster child
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Intel's Raspberry Pi rival Galileo can now run Windows
Behold the Internet of Things. Wintel Things
Microsoft cries UNINSTALL in the wake of Blue Screens of Death™
Cache crash causes contained choloric calamity
Eat up Martha! Microsoft slings handwriting recog into OneNote on Android
Freehand input on non-Windows kit for the first time
Time to move away from Windows 7 ... whoa, whoa, who said anything about Windows 8?
Start migrating now to avoid another XPocalypse – Gartner
You'll find Yoda at the back of every IT conference
The piss always taking is he. Bastard the.
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.